082314 Follow through ahead?

Technical Read: Spot gold dropped through the recent upward trading channel. This combined with the penetration of the July 31st pivot point is bearish action for the yellow metal. The question is will the breakdown continue?

Backdrop:

The US Dollar index broke out to the upside. This is bearish for gold.

Leading geo-political events (Gaza, Ukraine and ISIS expansion) are still active but the unrest is largely factored in the market. At this point, some new accelerant needs to be added to bounce gold higher. Bearish for gold.

This week’s Janet Yellen comments from the annual Federal Reserve conference at Jackson Hole were highly anticipated by market participants trying to gauge the future path interest rates. However, the remarks seemed designed to give the Central Bank plenty of latitude in keeping the asset purchase program in place. Interest rates drifted lower in the wake of the event. Bearish for gold.